Cuomo to give election-year State of the State address

Gov. Andrew Cuomo's fourth State of the State address Wednesday is expected to focus on property-tax relief and boosting the upstate economy in part through tax-free zones.

The speech has already garnered attention because he plans to call for the legalization of medical marijuana. But in an election year, Cuomo plans to use the speech to talk about the state's economic recovery and his ongoing plans to improve it.

The 1:30 p.m. speech near the Capitol will be centered around his plans to cut property and business taxes in one of the highest taxed states in the nation.

"Over the past three years, we have made unprecedented progress toward curbing the rise of taxes and government spending in New York, transforming a state budget with a $10 billion deficit to a $2 billion surplus," Cuomo said in a statement Monday.

Cuomo on Monday detailed a $2 billion plan to freeze property taxes for two years and then tie property taxes to household incomes. It was coupled with an array of business tax cuts for companies, including upstate manufacturing firms.

Cuomo is also going to discuss the development of his tax-free zones near college campuses that was approved by the Legislature last June. The program started Jan. 1 and would allow businesses to pay no taxes for 10 years if they set up near college campuses — particularly upstate.

"You can't beat zero," Cuomo said Monday.

The Democratic governor will also be looking to walk a balance between appeasing Republicans who share control of the Senate with Democrats who run the Assembly and mainly represent New York City. He is seeking a second term in November.

Assembly Speaker Sheldon Silver, D-Manhattan, on Tuesday said his office is evaluating Cuomo's tax plan and whether the state can afford it. Cuomo is banking on a $2 billion surplus within three years to pay for the package.

Silver said the plan needs to be equitable and include New York City homeowners. It already included a renters' rebate.

"It has to apply across the state," Silver told reporters. "The renters' piece is good, but there are also a lot of homeowners in New York City who will not be covered by the governor's plan."

Business groups and Republicans indicated their support for the tax plan.

"By reducing burdensome taxes and improving the business climate, a new era of growth and prosperity is possible," said Brian Sampson, executive director of the Rochester-based group Unshackle Upstate, in a statement.

The economy has improved over the past year. The unemployment rate in New York has dropped from 8.4 percent to 7.4 percent over the past year, and the state has 7.5 million private-sector jobs — an all-time high.

"Is it as much as anybody would want? No. But are the numbers up? Yes. And is the feeling better? Yes," Cuomo said in an interview last month with Gannett's Albany Bureau.

The speech won't only address economic issues.

Women's groups are renewing a push for the Legislature to pass a 10-point Women's Equality Agenda. Nine of the 10 points were approved by the Legislature, but Republicans balked at the piece that would strengthen abortion rights.

"We're putting the call out to the millions of pro-choice New Yorkers across the state to join us to shine a light on their senators' positions and hold our elected officials accountable," the group NARAL said in a statement Monday.

Cuomo pushed for the women's agenda in his speech last year, but it's uncertain whether he can get the Senate to approve it this year.

He also made a call for gun control last year in the wake of the school shootings in Newtown, Conn. He was successful just days later when the state Legislature passed a tougher gun-control law.

Gun-rights groups are planning to protest the speech Wednesday, as are groups opposed to hydraulic fracturing. Cuomo has yet to decide whether to move forward with the controversial drilling technique.

Pro-fracking groups said Cuomo should approve it as a way to help the upstate economy, particularly the Southern Tier.

Cuomo is proposing a $2 billion tax-cut plan over three to four years for property and business taxes.

Economy:

Tax-free zones near college campuses is expected to be highlighted in the speech as a way to spur new business growth.

Education:

In an election year, the governor plans to call for an increase in school aid as groups and unions call for at least a $1.3 billion increase and as New York City Mayor Bill de Blasio wants to tax the rich to fund pre-K.

Tourism:

The state has seen gains in tourism through a new advertising campaign. He is expected to address it.

Outstanding issues:

Strengthening abortion rights is a top issue at the Capitol, as well as tougher ethics and campaign finance laws.

To watch live:

Gov. Andrew Cuomo will give his fourth State of the State address 1:30 p.m. Wednesday. The Democrat and Chronicle will be streaming the speech live on its website.